TEST BANK
Corporate Finance: Core Principles and Applications, | 7th edition
by Stephen A. Ross, Randolph W. Westerfield,
Jeffrey Jaffe and Bradford D. Jordan
TU
TO
R
G
U
R
U
, Table of Content
PART ONE: OVERVIEW
Chapter One: Introduction to Corporate Finance
Chapter Two: Financial Statements and Cash Flow
Chapter Three: Financial Statements Analysis and FinancialModels
PART TWO: VALUATION AND CAPITAL BUDGETING
Chapter Four: Discounted Cash Flow Valuation
Chapter Five: Interest Rates and Bond Valuation
Chapter Six: Stock Valuation
TU
Chapter Seven: Net Present Value and Other Investment Rules
Chapter Eight: Making Capital Investment Decisions
Chapter Nine: Risk Analysis, Real Options, and CapitalBudgeting
PART THREE: RISK AND RETURN
TO
Chapter Ten: Risk and Return: Lessons from Market History
Chapter Eleven: Return and Risk: The Capital Asset PricingModel (CAPM)
Chapter Twelve: Risk, Cost of Capital, and Valuation
PART FOUR: CAPITAL STRUCTURE AND DIVIDEND POLICY
R
Chapter Thirteen: Efficient Capital Markets and BehavioralChallenges
Chapter Fourteen: Capital Structure: Basic Concepts
G
Chapter Fifteen: Capital Structure: Limits to the Use ofDebt
Chapter Sixteen: Dividends and Other Payouts
PART FIVE: SPECIAL TOPICS
U
Chapter Seventeen: Options and Corporate Finance
Chapter Eighteen: Short-Term Finance and Planning
R
Chapter Nineteen: Raising Capital
Chapter Twenty: International Corporate Finance
U
Chapter Twenty-One: Mergers and Acquisitions (web only)
,Student name:__________
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
Which one of the following items is an intangible asset?
A building
Accounts receivable
Inventory
TU
A loan from a creditor
A patent
Current assets include
TO
inventory and cash.
cash and buildings.
inventory and machinery.
R
equipment and cash.
buildings and inventory.
G
Short-term finance
U
ensures sufficient equipment is available to produce the desired amount of product.
ensures that long-term debt is acquired at the lowest possible cost.
R
ensures that dividends are paid to all stockholders on an annual basis.
balances the amount of company debt with the amount of available equity.
U
is concerned with managing net working capital.
Which one of the following is a capital budgeting decision?
Deciding whether to build a new distribution center
Determining how quickly to pay their accounts payable
Version 1 1
, Determining whether to use short- or long-term liabilities
Deciding how many shares of stock to repurchase
Determining how much cash to keep on hand
The managers in a firm have decided to move the company's headquarters from a rented space to
a new building that the company will purchase. This is an example of
a net working capital decision.
TU
a capital budgeting decision.
a short-term financing decision.
a capital structure decision.
TO
a cash flow decision.
Which one of the following actions involves a net working capital decision?
Deciding whether to build an apartment building
R
Negotiating whether to lease or buy a new store location
Determining whether to issue debt or equity to pay for the firm's expansion
G
Deciding how much inventory to keep on hand
U
Determining whether to replace a fleet of vehicles
The process of planning and managing a firm's long-term investments is referred to as
R
capital budgeting.
U
agency cost analysis.
financial depreciation.
working capital management.
capital structure.
Capital structure decisions involve
Version 1 2
Corporate Finance: Core Principles and Applications, | 7th edition
by Stephen A. Ross, Randolph W. Westerfield,
Jeffrey Jaffe and Bradford D. Jordan
TU
TO
R
G
U
R
U
, Table of Content
PART ONE: OVERVIEW
Chapter One: Introduction to Corporate Finance
Chapter Two: Financial Statements and Cash Flow
Chapter Three: Financial Statements Analysis and FinancialModels
PART TWO: VALUATION AND CAPITAL BUDGETING
Chapter Four: Discounted Cash Flow Valuation
Chapter Five: Interest Rates and Bond Valuation
Chapter Six: Stock Valuation
TU
Chapter Seven: Net Present Value and Other Investment Rules
Chapter Eight: Making Capital Investment Decisions
Chapter Nine: Risk Analysis, Real Options, and CapitalBudgeting
PART THREE: RISK AND RETURN
TO
Chapter Ten: Risk and Return: Lessons from Market History
Chapter Eleven: Return and Risk: The Capital Asset PricingModel (CAPM)
Chapter Twelve: Risk, Cost of Capital, and Valuation
PART FOUR: CAPITAL STRUCTURE AND DIVIDEND POLICY
R
Chapter Thirteen: Efficient Capital Markets and BehavioralChallenges
Chapter Fourteen: Capital Structure: Basic Concepts
G
Chapter Fifteen: Capital Structure: Limits to the Use ofDebt
Chapter Sixteen: Dividends and Other Payouts
PART FIVE: SPECIAL TOPICS
U
Chapter Seventeen: Options and Corporate Finance
Chapter Eighteen: Short-Term Finance and Planning
R
Chapter Nineteen: Raising Capital
Chapter Twenty: International Corporate Finance
U
Chapter Twenty-One: Mergers and Acquisitions (web only)
,Student name:__________
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
Which one of the following items is an intangible asset?
A building
Accounts receivable
Inventory
TU
A loan from a creditor
A patent
Current assets include
TO
inventory and cash.
cash and buildings.
inventory and machinery.
R
equipment and cash.
buildings and inventory.
G
Short-term finance
U
ensures sufficient equipment is available to produce the desired amount of product.
ensures that long-term debt is acquired at the lowest possible cost.
R
ensures that dividends are paid to all stockholders on an annual basis.
balances the amount of company debt with the amount of available equity.
U
is concerned with managing net working capital.
Which one of the following is a capital budgeting decision?
Deciding whether to build a new distribution center
Determining how quickly to pay their accounts payable
Version 1 1
, Determining whether to use short- or long-term liabilities
Deciding how many shares of stock to repurchase
Determining how much cash to keep on hand
The managers in a firm have decided to move the company's headquarters from a rented space to
a new building that the company will purchase. This is an example of
a net working capital decision.
TU
a capital budgeting decision.
a short-term financing decision.
a capital structure decision.
TO
a cash flow decision.
Which one of the following actions involves a net working capital decision?
Deciding whether to build an apartment building
R
Negotiating whether to lease or buy a new store location
Determining whether to issue debt or equity to pay for the firm's expansion
G
Deciding how much inventory to keep on hand
U
Determining whether to replace a fleet of vehicles
The process of planning and managing a firm's long-term investments is referred to as
R
capital budgeting.
U
agency cost analysis.
financial depreciation.
working capital management.
capital structure.
Capital structure decisions involve
Version 1 2
